Considering that the Dollar keeps on dropping, is German Economy threatened?

Question

Germany is No.1 exporter of goods, though being one of the smaller nations.
If the dollar keeps on dropping, will the German exports also drop?

Answer 1

Yes and no.

The Germans have been smart enough to diversify where their factories are built. Many German factories are located in the United States, Brazil and other nations. To a certain extent this will help them. You would have to take a look at the overall net effect to decide.

I'd guess it is an overall negative, but not as drastically negative as one might think.

Take a look at German car manufacturing done in the Americas.

Answer 2

Probably, but German purchasing power for imports will improve, too, and so will income from German investments in the U.S. (of which there are a lot).